The Week Ahead

The big item next week is the FOMC policy announcement, slated for Aug. 5 at 2:15 ET. It is widely expected that the fed funds rate will remain unchanged at 2.00%, which leaves the policy directive as the main point of interest

The Week Ahead

The coming week is packed with earnings reports and several highly influential pieces of economic data, including the advance second quarter GDP report and the July employment report.

The Week Ahead

The peak of second quarter earnings reporting season hits in the week ahead, and with limited economic data to digest, market participants will be focused on the various earnings beats and misses.
A total of nine Dow components will report, including 3M (MMM), AT&T (T), Boeing (BA), Bank of America (BAC), Caterpillar (CAT), DuPont (DD), Pfizer (PFE), McDonald's (MCD) and Merck (MRK).

The Week Ahead

US Market participants get next Friday off in observance of Independence Day. The shortened week is packed with economic reports, which will keep traders busy leading up to the extended weekend.

Last Friday, Japan report annual consumer inflation accelerated more than expected in May, hitting a new decade-high on surging energy and food prices. In addition, renewed concerns over the global credit crisis added to the gloom. The Nikkei is expected to face continued pressure this week.

The week ahead

The focal point next week will be the FOMC policy announcement on Wednesday. The market expects the fed funds rate to remain unchanged at 2.00%, but uncertainty remains & the wordings of the policy directive will be closely watched. In addition, market players will also be keeping a close eye on economic data. The consumer confidence, durable orders, new home sales, existing home sales, and personal income and spending reports just to name a few. With Friday's steep losses on Wall Street, the Nikkei will face some head winds into next week. This might mean that the N225 Aug Puts will start to look attractive again & can be considered for adding into the positions to complete the Aug's income set up. Should the index at any point bucks the trend, it will be present a good opportunity to take on additional N225 Sep Calls.

The Week ahead

I am back in Singapore after 10 days of break. Its nice to be back. Me & my wife resolve to live heathier in Singapore after 10 days of detoxing...eating fresh fruits, vegetables, seafood, green tea & coupled with lots of walking & uninteruppted 7 hrs of sleep everyday. It was a refreshing & rejuvenating trip. I am glad that I made that trip.
Meanwhile, Wall street ended a turbulent week with a sharp gain on Friday after inflation numbers came in within expectations & an easing in oil price. The coming week isn't action packed but it will be closely watched, with earnings results from three major Wall Street banks and several potentially market-moving economic reports. As for the Nikkei 225, I am seeing good support at around the 14000 levels & thinking more upside potential next week & so will be looking to write the Sep calls (17500 and above). I will add a few more Aug puts (9750 & 10000) along the way if opportunity permits...since the premiums still look attractive to complete the Aug's income set up.

The Week Ahead

The last FOMC minutes revealed some major concerns--inflation estimates were raised for this year, unemployment was revised upward and GDP estimates were lowered. Clearly, we are not out of the woods yet but in spite of potentially roughtimes ahead, the minutes confirmed that the Fed is done easing--a one-two punch that could knock stocks to the canvas. With support broken at 13,800 on the SP-500 we could have some downhill sledding next week. Light holiday trading will increase volatility and there will be a number of economic releases to fuel the fire. Given the recent Fed's comments, those economic numbers are likely to be weak. For example retail sales have been generally light and that is liable to continue. The news will have a negative bias and the only thing that can prop stocks now is a decline in energy prices--but with oil hitting new highs every day this market will have a toughtime. The weak sectors are financials, healthcare, retail and restaurants and there will be some tremendous opportunities to profit on the downside with options trading. Some said that if you don't include options as one of your trading arsenal, its like golfing without a full set of clubs. Have a great weekend!